DGAP-News: VERBIO Vereinigte BioEnergie AG: CHANGED REGULATORY FRAMEWORK CONDITIONS AS WELL AS MARKET DISTORTIONS LEAD TO EXTRAORDINARY DEPRECIATIONS AND STRATEGIC RESTRUCTURING OF THE GROUP
(firmenpresse) - DGAP-News: VERBIO Vereinigte BioEnergie AG / Key word(s): Quarter
Results/Profit Warning
VERBIO Vereinigte BioEnergie AG: CHANGED REGULATORY FRAMEWORK
CONDITIONS AS WELL AS MARKET DISTORTIONS LEAD TO EXTRAORDINARY
DEPRECIATIONS AND STRATEGIC RESTRUCTURING OF THE GROUP
30.04.2013 / 10:45
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CHANGED REGULATORY FRAMEWORK CONDITIONS AS WELL AS MARKET DISTORTIONS LEAD
TO EXTRAORDINARY DEPRECIATIONS AND STRATEGIC RESTRUCTURING OF THE GROUP
Zörbig/Leipzig, 30 April 2013 - According to available preliminary figures,
VERBIO Vereinigte BioEnergie AG produced overall 376,919 tons biofuels
following to 442,676 tons in the same period of the previous year. VERBIO
AG will report a Group period result (according to IFRS) of EUR -143.3
million as at 31 March 2013 (9 M 2011/2012: EUR 6.6 million) according to
the preliminary calculations, which is significantly impacted by
amortisations of goodwill and depreciations of plant and equipment without
effects on liquidity (EUR 102.3 million), value adjustments in inventories
(EUR 14.2 million) as well as lower proceeds from the sale of biofuel
quotas (EUR 10.8 million) in the third quarter of 2012/2013.
Impairment of goodwill and write-offs related to fixed assets in the
biodiesel and bioethanol segments due to changed framework conditions as
well as market distortions
The changed framework and market conditions for biofuels within the
European Union (EU) have prompted the Management Board to subject the value
of the goodwill attributed to the biodiesel segment and the value of fixed
assets in the bioethanol segment to a review. The review resulted in
amortisations of the goodwill and customer relations in the biodiesel
segment in the amount of EUR 82.5 million as well as EUR 19.8 million in
depreciations of fixed assets in the bioethanol segment, each without
effects on liquidity.
Until now VERBIO has exclusively relied on local value creation and use of
raw materials from sustainable domestic production for the generation of
biofuels. In the first half year of the business year 2012/2013 especially
the import of biodiesel from non-sustainable and subsidised production
(from soya and palm oil) from Argentina and Indonesia as well as biodiesel
produced from used cooking oil has had a negative effect on the results of
VERBIO. The measures initiated by the EU Commission against the subsidised
imports as well as the verification obligations for biodiesel from used
cooking oil, which are subject to stricter requirements since 1 January
2013, have shown positive effects, but did not yet lead to a biodiesel
market recovery.
Strategy adjustments in the raw materials supply - sale of Märka Group
decided
Several EU member states still fail to implement the sustainability
standards for biofuels as prescribed by the EU Commission so that large
quantities of cheap, non-sustainable vegetable oil from South America and
Asia flood the European biodiesel plants and rapeseed oil is increasingly
being pushed out of the market as a raw material. Furthermore, the European
Union recognises large quantities of palm oil imported from South East Asia
as being sustainably produced, which likewise entails, due to the big
difference in price between palm oil and rapeseed oil, that rapeseed oil is
being pushed out of the market as a raw material for the biodiesel
production. This means that VERBIO will largely reduce the use of locally
produced raw materials for the production of biofuel.
In addition, the EU Commission has tangible plans for limiting the use of
first generation biofuels, which are produced from potential foodstuffs,
such as corn and rapeseed, and for stopping its further promotion at an
additional increase of the biofuel share.
VERBIO cannot escape these developments. The Management Board has therefore
decided to no longer pursue the present strategy of procuring exclusively
regional and sustainable raw materials and to sell Märka GmbH. As an
alternative, the Management Board is also looking into a sale of particular
Märka sites as well as the establishment of a joint venture for Märka.
Adjustment of the Groups corporate structure planned - positive outlook to
the 4th quarter 2012/2013
In the course of the sale of Märka Group, the Management Board will adjust
the Groups corporate structure to the changed conditions. The aim of these
measures is being able to respond more flexibly and quicker to market
distortions and market changes in the future, both on the procurement as
well as the sales side.
The planned measures will lead to a reduction of corporate debt (working
capital) by more than EUR 100 million as well as to improved profitability
- while maintaining an equity ratio of appr. 50 percent. For the fourth
quarter 2012/2013 the Management Board expects to accomplish a positive
operating result.
The interim report for the third quarter 2012/2013 will be accessible at
www.verbio.de on 8 May 2013 starting from 12:00 p.m.
Information about VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO is one of the leading independent producers and providers of
biofuels and is at the same time the only large industrial producer of
biodiesel, bioethanol and biomethane in Europe. The nominal capacity is at
a rounded 450,000 tons biodiesel, 300,000 tons bioethanol and 480 gigawatt
hours biomethane per year. In the production of its highly efficient fuels,
the company uses energy-saving production processes and innovative
technologies of own development. The biofuels of VERBIO achieve CO2
reductions of up to 90 percent compared to petrol or diesel. VERBIO
delivers its products directly to the European mineral oil conglomerates,
mineral oil trading companies, independent gas stations, freight
forwarders, municipal utilities and vehicle fleets. In addition, VERBIO
markets high-quality pharma glycerine for the consumer goods and cosmetics
industry (glycerine is gained as a by-product in biodiesel production).
Within the group, VERBIO Vereinigte BioEnergie AG acts as Management
Holding. The operative business is exercised by the subsidiaries, VERBIO
Diesel Bitterfeld GmbH&Co. KG, VERBIO Diesel Schwedt GmbH&Co. KG,
VERBIO Ethanol Schwedt GmbH&Co. KG, VERBIO Ethanol Zörbig GmbH&Co. KG
and Märka GmbH. The VERBIO stock (ISIN DE000A0JL9W6 / WKN A0JL9W) has been
listed at the Prime Standard of the Frankfurt stock exchange since October
2006.
Important notice
This Corporate News contains forward-looking statements, which are based on
assumptions and estimates of the company management of VERBIO Vereinigte
BioEnergie AG. Although the company management is of the opinion that these
assumptions and estimates are accurate, the actual future development and
actual future results may differ significantly from these assumptions and
estimates due to various factors. Among these factors may be, for example a
change in the overall economic situation, legal and regulatory framework
conditions in Germany and the EU, as well as changes within the industry.
VERBIO does not assume any guarantee or liability for the consistency of
the future development and the actual results achieved in the future with
the assumptions and estimates expressed in this Corporate News.
End of Corporate News
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30.04.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig
Germany
Phone: +49 (0)341 30 85 30 290
Fax: +49 (0)341 30 85 30 298
E-mail: ir(at)verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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